Answered step by step
Verified Expert Solution
Question
1 Approved Answer
how did you get the carrying value in 2015 =87801 by using the fourmla i have sent in the second i want to get it
how did you get the carrying value in 2015 =87801 by using the fourmla i have sent in the second i want to get it by using the fourmla i send and show calculation step by step in calculator
Example 2: On January 1, 2015, KFC Company purchased 10% (stated) bonds, having a maturity value of $90,000, for $..4. The bonds provide the bondholders with a 11% (market) yield. They are dated January 1, 2015, and mature January 1, 2018, with interest receivable December 31 of each year. KFC Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the available-for-sale category. The fair value of the bonds at December 31 for 2015 and 2016 is $87,000 and $91,000 respectively. Instruction: PV for interest ={1(1+1)n1}(FVSR) IN=(FVSR) {{(1+b)m1}F,V+{11(1+b)m1}IN Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started